President Trump is expected to sign two executive orders peeling back regulations on the financial sector.
Senior White House officials indicate that the executive orders will be signed on Friday.
The first executive order will reduce enforcement of the regulations from the Dodd-Frank, a financial reform package signed into law by President Obama in 2010.
Dismantling Dodd-Frank was an early campaign promise of President Trump. It seems he is moving full steam ahead, saying earlier this week, “Dodd-Frank is a disaster… We’re going to be doing a big number on Dodd-Frank.”
Dodd-Frank was introduced to address “too-big-to-fail” banks in the aftermath of the financial crisis. The law forced American banks to hold less debt, maintain large cash reserves, and create “living wills” in the event a bank needed rescue during a crisis.
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It also created the Consumer Financial Protection Bureau to oversee consumer banking and financial products.
The second executive order will scrap the Obama-era Labor Department rule on “fiduciary duty.” The rule was only finalized in June but placed onerous restrictions on financial advisers and retirement plans. Like most regulations, the rule had been vehemently opposed by the financial industry.
The executive orders will mark a turning point in recent American economic policy.
Trump’s administration is said to be largely interested in decreasing the regulatory overview and burden government places on business. A stark contrast to the Obama administration.
H/T: The Hill
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